S4B Crypto Contest - Season 6
Assalamualaikum dear brothers and sisters |
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Hope you all are doing well and good and enjoying the best days of your life. im @danish578 from Pakistan and you are reading my bloq On steemit platform.You all are welcome here with my deep of heart.
by @waqarahmadshah
How is the price of a cryptocurrency determined in the market? |
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AssalamuAlaikum, I hope everyone will be well. If we talk about how the price of Cryptocurrency is determined in the market, then I would like to tell in simple words that the price of cryptocurrency is determined based on the supply and demand in the market. Supply means how many things are available in the market and demand means how many things are required in the market. For example, when people show more interest in a cryptocurrency and its need and demand increases, its price also increases. On the contrary, if people show less interest in that cryptocurrency or the demand for it decreases, then its value decreases. This means that market sentiment, technological developments, regulatory changes, and investor behavior also influence the daemon. I hope you will have understood this.
How can individuals purchase and store cryptocurrencies? |
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To store cryptocurrency, people use wallets. I also recommend wallets as they are safer than exchanges. Any coin can get delisted at any time which can cause loss to the buyer. These wallets are in digital or hardware form in which cryptocurrencies are stored. The most popular and widely used wallets include mobile wallets (like Trust Wallet) which I use myself, desktop wallets (like Exodus) which I have not used myself but keep information about, and similarly hardware wallets (like Ledger Nano S) included.
How secure are cryptocurrency transactions compared to traditional banking? |
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If you are talking about security, in my view, cryptocurrency transactions, like Bitcoin or Ethereum transactions are more secure because they are based on blockchain technology. Blockchain is a decentralized ledger which secures every transaction with cryptographic techniques. If I want you to understand in simple words, what I mean is that the data of every transaction is stored securely within the chain and nodes of the network are used to verify it.
And on the other hand, if we talk about transactions in traditional banking, they are less safe than Blockchain transactions because these transactions are processed through a central authority or a bank. There is a central database in which customer data and transactions are stored. But in this centralized approach, if a hacker or an insider can gain access from inside the bank, the data can be manipulated or compromised, hence cryptocurrency transactions are safer with this approach.
And apart from this, I would like to tell you that in cryptocurrency transactions there is a public record of every transaction which every user can see. Or this transparency increases security a lot, besides this hacking attempts can be stopped due to the use of cryptographic techniques. And I have understood the logic behind all this but first I would like to tell you that overall cryptocurrency transactions are more secure than traditional banking due to decentralized nature and cryptographic security measures.
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Can cryptocurrency be used for illegal activities like money laundering? |
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Of course, if we talk about illegal activities or black money, then cryptocurrency can be used for illegal laws like having money laundering issues .And the reason for this is that cryptocurrency is available all over the world and it is known that anyone can do cryptocurrency transactions from any country and easily transfer cryptocurrencies to another country.
But blockchain analysis tools are getting better day by day so that blind legal transactions can be brought into view, due to which people indulge in money laundering. Regulatory measures are also being implemented so that all illegal activities involving cryptocurrency can be minimized and identified.
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for participate in this contest.
X promotion link: https://x.com/danifx578/status/1786777138839818395
Friend @danish578 greetings, stay well
Exactly my friend, an easy to use and run platform for me is BINANACE and I use it often and I have no complaints. It serves to do a lot, such as trading, holding and above all to store our assets and use the p2p function. It is very useful indeed.
What a great post my friend, very informative and understandable. see you!
AsslamuAlikum ap na mention kiya hai k ap asset ko store krna k liya b binance ka use krta hu tu ma recommend kru ga or post ma b kiya hai k ap exchange ki jaga par wallet ma Holding kru jo k risk free hai